Recently, SINOTRUK (Hong Kong) International Investment Limited ("SINOTRUK"), a subsidiary of China National Heavy Duty Truck Group Corp., Ltd. ("SINOTRUK Group"), officially signed a contract for equity investment in JVMAN AUTO-Uzbekistan LLC ("Target Company") in Uzbekistan. DeHeng, in cooperation with local Uzbek law firm, Azizov & Partners Firm of Advocates, provided full-process legal services for the cross-border investment on behalf of the Chinese investor.
SINOTRUK Group is the first heavy truck manufacturer in China and has the largest heavy truck production base in the country. The Target Company, JVMAN AUTO-Uzbekistan LLC, is the most important manufacturer of heavy trucks directly under the Ministry of Automotive Industry in Uzbekistan. According to the contract signed, SINOTRUK will be a main shareholder of the joint venture to which SINOTRUK will provide technical license, brand license, product localization, after-sales service and a package of solutions. Via the joint venture in Uzbekistan, SINOTRUK will be able to participate in the production of trucks and buses in the surrounding areas covered by the Belt and Road Initiative, and export more of China's heavy trucks to Central Asian countries. It will also help SINOTRUK deeply integrate into the local market, enhance its brand competitiveness along the Belt and Road, and become another model case of how Chinese enterprises building up international competitiveness on the Belt and Road Initiative.
As the legal counsel, the DeHeng team was headed by partners Jia Hui and Zang Jiemei, with primary support from lawyers Li Kaiqi, Liu Huan, Guo Yujia and Gao Ya. They provided whole-process legal services for the Chinese buyer, including drafting and signing of preliminary intent documents, legal due diligence, transaction structure design and legal demonstration, drafting and revision of transaction documents, multiple rounds of transaction documents negotiation, approval and filing of foreign investment and the final closing.
In this transaction, Uzbekistan's local foreign investment legal environment and preferential policies for the automotive industry are undergoing changes. Subject to the risk of adverse changes in local laws and preferential policies in the automobile industry. DeHeng lawyers fully considered the characteristics of the project, combined with the needs of SINOTRUK, provided professional legal services to clients, assisted in the successful completion of this overseas investment project, and won favorable comments from the client.